First American (FAF) Q2 2025 Earnings Transcript

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Wed, April 22, 2026 astatine 11:06 AM CDT 20 min read

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Thursday, July 24, 2025 astatine 11:00 a.m. ET

• Chief Executive Officer — Mark Edward Seaton

• Chief Financial Officer — Matthew Feivish Wajner

Mark Seaton; and Matt Wajner, Chief Financial Officer. Some of the statements made contiguous whitethorn incorporate forward-looking statements that bash not subordinate strictly to humanities oregon existent fact. These forward-looking statements talk lone arsenic of the day they are made and the institution does not undertake to update forward- looking statements to bespeak circumstances oregon events that hap aft the day the forward-looking statements are made. Risks and uncertainties beryllium that whitethorn origin results to disagree materially from those acceptable distant successful these forward-looking statements. For much accusation connected these risks and uncertainties, delight notation to yesterday's net merchandise and the hazard factors discussed successful our Form 10-K and consequent SEC filings.

Our presumption contiguous contains definite non-GAAP fiscal measures that we judge supply further penetration into the operational ratio and show of the institution comparative to earlier periods and comparative to the company's competitors. For much details connected these non-GAAP fiscal measures, including presumption with, and reconciliation to, the astir straight comparable GAAP financials, delight notation to yesterday's net release, which is disposable connected our website astatine www.firstam.com. I volition present crook the telephone implicit to Mark Seaton.

Mark Edward Seaton: Thank you, Craig. And convey you to everyone joining our call. Today, I volition supply a little reappraisal of our earnings, sermon our marketplace outlook and reason with immoderate thoughts connected superior management. Today, we announced our 2nd 4th adjusted net per stock of $1.53. This effect includes the interaction of $0.12 per stock related to enforcement separation costs. Our net were beardown contempt continued challenges successful the U.S. lodging market. Our show this 4th was highlighted by continued spot successful our commercialized business. Commercial gross was up 33%, and we acceptable an all-time grounds successful our National Commercial Services part for interest per record successful a quarter.

We are seeing broad-based spot successful Commercial again this quarter, led by industrial, which includes information halfway transactions and multifamily. We're besides seeing a continued displacement toward refinance successful commercial. Historically, our gross was astir 30% refinanced but this quarter, it was 46%. The sales, underwriting, closing and operations teams that thrust our commercialized concern are the champion successful the industry. They woody with analyzable multisite, multistate, and sometimes, cross-border transactions, portion skillfully underwriting hazard and providing astonishing work and transparency to our clients. Our commercialized concern besides drives overmuch of our escrow deposits, which helped thrust concern income. Investment income grew 17% this quarter.